On July 28, 2021, the United States Court of Appeals for the Second Circuit affirmed the District Court’s ruling that Donald Trump, his immediate family, and The Trump Corporation cannot compel arbitration of the fraud case pending against them in the Southern District of New York. The case, filed in the fall of 2018, alleges the Trumps defrauded investors into purchasing memberships in a multi-level marketing scheme called ACN. The Trumps had appealed to the Second Circuit arguing that the fraud case could only proceed in private arbitration because of agreements that the investors had signed with ACN. The Second Circuit affirmed the District Court’s denial of the Trumps’ motion to compel arbitration and ruled that the Trumps and ACN were never sufficiently connected such that the investors would have understood that any of their contractual obligations with ACN would correspond to obligations with the Trumps.
“We are glad that the Second Circuit has affirmed Judge Schofield’s well-reasoned opinion. We can now press forward in our fight to obtain justice for our clients and hard-working consumers across the county who fell victim to Donald Trump and his family’s fraud. We look forward to receiving discovery from the Trumps, ACN, and the producers of ‘The Apprentice’ as we move into the next stage of our litigation,” said Andrew G. Celli, Jr., an ECBAWM attorney for the Plaintiff investors.
The investors are represented by ECBAWM attorneys Andrew G. Celli, Jr., Jonathan S. Abady, Matthew D. Brinckerhoff, O. Andrew F. Wilson, Katherine Rosenfeld, Sam Shapiro, David Berman, and Nick Bourland.